As the U.S. Federal Reserve prepares to make their expected interest rate decision on October 29, 2025, cryptocurrency markets have seen a notable surge in stablecoin deposits – signaling increased investor activity and market shift anticipation among traders.
Recent data reveals that stablecoin supply has increased for the first time since September, suggesting macroeconomic factors are leading to fresh inflows into the crypto market. Furthermore, liquidity on centralized exchanges has seen an outright decrease; order book depth now standing at just 40% of pre-liquidation levels, suggesting an increasing interest in stablecoins as traders await Federal Reserve’s policy decision.
CoinDesk
The Federal Reserve is widely anticipated to announce a 25 basis point interest rate cut, with prediction markets assigning it an overwhelming probability. Furthermore, traders are monitoring for signs that it might slow its balance sheet runoff which would help further ease financial conditions and potentially benefit risk assets such as cryptocurrency.
CoinDesk This environment has led to a gradual rebound of perpetual futures funding rates, which have recently turned positive again for most major tokens. Open interest in Bitcoin (BTC) and Ethereum (ETH) has steadily been growing back as investors anticipate rate cuts that could take effect shortly.
CoinDesk Tether (USDT), USD Coin (USDC), and Binance USD (BUSD) have long been seen as a leading indicator of market sentiment. When traders move large amounts of stablecoins onto exchanges, it typically signals their intent to purchase riskier crypto assets – possibly suggesting investors’ readiness to deploy capital quickly should the Federal Reserve announce rate cuts that lead to renewed enthusiasm in cryptocurrencies.
Rate cuts have historically triggered significant inflows into crypto markets, as lower borrowing costs increase liquidity and encourage investment in riskier assets. This pattern can be seen today where anticipation of a dovish Federal Reserve is creating the conditions necessary for cryptocurrency trading in late-year markets.
As investors wait on the Federal Reserve’s announcement, stablecoin inflows have shown rising investor trust that favorable macroeconomic conditions will drive cryptocurrency market expansion. Overcoming resistance may prove vital in maintaining bullish momentum for digital assets in 2019.
